Bill seeks to end some furloughs for Calif workers

SACRAMENTO, Calif. 
California would end three-day-a-month furloughs for tens of thousands of state employees under a jobs bill that is scheduled for its first committee hearing this week.

The targeted employees would be those who work for agencies that collect taxes or receive their revenue from sources other than the state's general fund, such as the Department of Motor Vehicles.

Republicans have been critical of the Democratic proposal, saying it does not go far enough to create private-sector jobs.

The bill's sponsor, Senate President Pro Tem Darrell Steinberg, D-Sacramento, said allowing certain workers to return to their jobs full-time will actually generate more revenue for the state and improve customer service.

He said furloughing workers at the Franchise Tax Board is costing the state more than $300 million a year in uncollected taxes. His bill would exempt the tax board and the Board of Equalization, which is fighting the furloughs in court.

The state loses $7 in tax board collections for every $1 it saves by furloughing workers there, the Senate Office of Oversight and Outcomes calculated in a report released Friday.

Steinberg's bill also would exempt other agencies that receive at least 95 percent of their budgets from federal money or fees, which are not tied to the general fund.

The state's general fund is its main account to pay for daily operations and is the subject of the tens of billions of dollars in budget cuts lawmakers have made the past few years.

Putting state government employees back to work is important to Steinberg, who represents a district that has been affected especially hard by the furloughs.

He also wants to end furloughs at the Department of Motor Vehicles to improve service at one of the state's busiest agencies. The DMV is funded with vehicle and driver's license fees and federal money, not general taxes.

Steinberg said closing DMV buildings three days a month inconveniences motorists, boosting the wait time for customers without an appointment from 27 minutes to 45 minutes.

Last year, Gov. Arnold Schwarzenegger ordered nearly 200,000 state employees to begin taking three days off each month without pay to help close the state's budget deficit. That effectively cut their pay by 14 percent.

Steinberg's bill would put about 80,000 of them back to work full time.

The furloughs must apply to all employees to save the state a projected $3 billion over 18 months, said Rachel Arrezola, a spokeswoman for Schwarzenegger. More than half the savings would come from the general fund.

Schwarzenegger has proposed ending the furloughs after June, replacing them with a permanent 5 percent pay cut and 5 percent pension-contribution increase for every worker. He also is seeking a 5 percent payroll reduction across state government from attrition or layoffs.

The Republican governor announced his own jobs plan last month. He praised lawmakers for floating alternatives and said he would work with legislative leaders to merge the three proposals.

"That's the most important thing now, that we put politics aside and only think about one thing, and this is putting people to work. Jobs, jobs, jobs," he told reporters last week.

Steinberg's bill is set to be heard Tuesday by the Senate Public Employment and Retirement Committee. It is one of 27 proposed by Senate Democrats as part of a jobs-creation package, setting up a debate with Republicans who want more attention paid to the private sector.

Other legislation to be considered in Senate committees this week:

- The Energy, Utilities and Communications Committee is scheduled to consider three other job-related bills on Tuesday. One, by Sen. Alex Padilla, D-Los Angeles, would accelerate permitting of large renewable energy projects by the California Energy Commission.

The second, by Padilla and Sen. Fran Pavley, D-Agoura Hills, would create a borrowing program for owners who want to retrofit homes and businesses to save energy. The third, by Sen. Gil Cedillo, D-Los Angeles, would devote $20 million in federal stimulus money to improving energy efficiency at community colleges.

- A bill creating a Homeowner's Bill of Rights is set for a hearing Wednesday before the Senate Banking, Finance and Insurance Committee.

In the coming weeks, other bills will seek to cap annual tuition hikes at public universities, promote hiring of California residents by companies doing business with state government and speed up spending of federal stimulus money on schools and transportation projects, including high-speed rail.

Republicans will pursue bills this year that concentrate on creating and retaining jobs at small businesses. Their focus will be on cutting regulations, lawsuits and taxes that encourage businesses to flee California, said Senate Minority Leader Dennis Hollingsworth, R-Murrieta.

"The answer is not in more government or bureaucracy or higher taxes," Hollingsworth said.